How can businesses prepare for new £1 coin?

/ Posted By - Bradleys Accountants / Categories - Advice for Small Businesses

Businesses across the UK are getting ready for change. They just won’t be taking the old £1 coins.

With the old £1 coin scheduled to go out of circulation on March 28, 2017, all business from coin handling equipment manufacturers to individual companies in sectors with high cash transactions e.g. retail, transport and leisure industries, are gearing up for when they will only accept the new 12-sided £1 coins.

The Treasury in autumn last year announced it was putting the 30-year-old pound coin out of circulation, saying the old coin was vulnerable to sophisticated counterfeiters. They had said that approximately one in thirty £1 coins in circulation were a counterfeit.

Now with the deadline just over a month away, coin-accepting equipment found in payphones, gaming machines and photo booths could require upgrades, and business owners will also need to ensure staff vending machines are ready for the switch.

So, what do businesses need to do?

In preparation, businesses should:

What’s the timeline?

What does my business do during the co-circulation period?

What does my business do during the post co-circulation period?

How should businesses return the current £1 coin and new £1 coin to their bank after the new coin is introduced?

According to The Royal Mint Limited, “You should return the current £1 coin and new £1 coin in separate packaging. Equipment used by banks and others to count coin uses the weight of the coin. The weight of the current £1 coin and new £1 coin is different, so any packages with a mixture of coins cannot be easily verified. This may delay the counting process and when accounts can be credited. You should check arrangements for returning coin with your bank or cash in transit (CIT) provider.”

By scrapping the old £1 pound coin, the Treasury hopes to combat counterfeiters who have around 45 million counterfeit £1 coins currently in circulation.

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